What is the difference between the expansion of enterprises, building new ships and buying second-hand ships?

Differences in the use of funds and financing methods.

1. Difference in the use of funds: The new ship financing is mainly used to pay for the purchase of shipyards or ships and related taxes, including construction costs, design costs and taxes related to new shipbuilding paid to shipyards. The financing of buying second-hand boats mainly involves paying the existing goods in the actual second-hand market, that is, the ready-made second-hand goods that have existed and been put into use for a period of time, including paying the second-hand ferry price to the seller, resulting in additional transportation and registration fees.

2. Differences in financing methods: Newly-built shipping companies will adopt direct financing to support newly-built ferry projects. Direct financing means that enterprises directly apply for loans from banks or other financial institutions and transfer the borrowed money to the corresponding engineers (such as container manufacturers) for payment. Buying second-hand ferries adopts a more indirect, complex and flexible indirect credit model. For example, lease a letter of guarantee from banks and other institutions in the form of a lease contract, and then use the letter of guarantee as a voucher to buy a second-hand ferry from the seller.